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Power Minister assures retention of competitive bidding process even after amending Electricity Act

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4 years ago

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By Saman Indrajith

Minister of Power and Energy, Kanchana Wijesekera on Wednesday told Parliament that the proposed amendments to the Sri Lanka Electricity Act would not lead to the abolition of the competitive bidding process for procurement of electricity.

The Minister said that they were only trying to make the implementation of sustainable energy products easier subject to approval by the Sustainable Energy Authority.

“There is also a misconception that the changes to the Act allows various companies including foreign ones to increase electricity prices according to their whims and fancies,” he said.

Minister Wijesekera said that even after the amendments, it was the Ceylon Electricity Board (CEB) that had the authority to determine the price of a unit of electricity.

“The CEB has a pricing formula to buy electricity. The formula is implemented by officials at CEB, the Ministry and Sustainable Energy Authority. The government and the Cabinet can’t decide the rate at which we would buy energy from the supplier”, he said.

In the past the CEB had done its best to thwart renewable energy projects, the minister said. The existing act helps the CEB to place obstacles for those willing to invest in renewables, he said.

There were discussions to change the act since August 2013, he said. However, certain powerful sections of the CEB had been opposed to changes that would reduce their powers.

“Only some engineers are opposed to the amendments. These are people who pushed for thermal power plants and thwarted attempts to boost renewables. The CEB last week asked me to increase electricity tariffs by 300 percent. The cost of electricity production is over 755 billion rupees a year. Our income is 250 billion rupees a year. There is a gap of 500 billion rupees. We pay tremendous amounts of money for diesel and to pay officials. The salaries of officers increase by 25 percent, once every three years.

“Do we need to pay for these unnecessary cost overruns by placing extra burden on the people? No, we must do this by reducing cost”, he said.

The Minister said that he would not present proposals to increase electricity tariffs, unless the CEB took steps to boost renewable energy that is low cost and clean.

Minister Wijesekera said that it was CEB officials who had entered into agreements with various power suppliers. The cost of a unit of electricity at Lakvijaya power station is 41.80 rupees, it is 80.50 rupees at Sojitz Kelanitissa Pvt Ltd, 61.56 rupees at Power Plant B, Sapugaskanda, 66.42 rupees at Power Plant A, Sapugaskanda, 62.14 rupees at the Barge, 65.52 at Uthuru Janani, 68.20 at west Coast, 98.40 rupees at Kelanitissa Combined Cycle, 137.60 at Kelanitissa G-T7, and182.40 at Kelanitissa Frame 5, the Minister said.

“The unit of electricity produced using renewable sources costs 16.80 rupees. Solar is bought at 22.50 rupees. A unit of electricity through hydro costs 4.35 rupees. Don’t take steps to thwart renewable energy. Right now, the energy permit is given a year after the tentative approval even if you own the land where the project will be implemented,” he said.

The Minister said that 800 million dollars was needed to purchase coal for the next year. The government spent 100 million dollars a month for diesel, needed to produce thermal power.

“We will produce more than what the country needs through these power projects. I think we must connect our electricity grid with India. We will be selling electricity to India soon,” he predicted.

Meanwhile, Opposition Leader, Sajith Premadasa said that they were supportive of renewable power and wanted to empower domestic energy producers. However, the real objective of the amendments to the Electricity Act was to allow certain foreign companies to monopolise the renewable energy sector, he asserted.

Those opposed to the amendments to the Act were not against boosting renewable energy production, Premadasa said. They were only opposed to the attempts made by the government to take away the competitiveness of the procurement process, he said.

“We will end up letting these foreign companies dominate the industry and pay them in dollars. And we will pay them double of what we pay domestic producers. By amending Section 43 of the act, we will only take away competitiveness. It will facilitate the monopolization of renewable energy,” he said.

Meanwhile, Ven. Aturaliye Rathana Thera said that even countries that had vast oil and coal reserves were shifting towards renewable energy sources. Sri Lanka had not attempted to exploit solar and wind power, which are abundant here, he said. The United Nations Development Programme allocates about 100 million US dollars a year to support such projects, but Sri Lanka had never tried to access those funds, the thera said.

The President in his election manifesto said that Sri Lanka needed to produce 70 percent of electricity through renewable energy sources, he said.

“Now, we get 65 percent of our power from diesel and coal. Nothing has been done since the President came to power. Has the CEB made long term generation plans based on the President’s vision? Did the government not see this crisis coming? A lot of people tried to warn the government. Instead of amending bits and pieces of the Act, the government must present a national policy on electricity, which it promised to do,” Rathana Thera said.

The Thera added that the Prime Minister had promised to establish a committee of experts and representatives of all parties when making important decisions. That had not been done with regard to changing the important Act, he said.

The Thera also said that he was supportive of renewable energy. However, there was reason to believe that the amendments to the Act were aimed at creating a monopoly over solar and wind power for the benefit of a foreign company.

“Not only will we keep on bleeding dollars, but we will also lose energy sovereignty. We need to amend the Act, but if you are trying to encourage unsolicited bidding under the guise of promoting renewable energy it will only have disastrous consequences. There is no problem with allowing unsolicited bids from investors who want to produce less than 25 megawatts through renewable energy”, he said, adding that there were many Sri Lankans abroad and they would send solar panels and batteries to their homes if the process was facilitated.

“The government will have to bear little cost. Let’s encourage rooftop solar panels, if most people set up these systems, we won’t have any problems. We don’t need to overthink this. We don’t need to try to create massive companies. We can produce a gigawatt of energy through rooftop solar with ease and if we can do this, we won’t have a crisis.”


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Our objective is to ensure that the Commission to Investigate Allegations of Bribery or Corruption operates as an independent institution, free from any external influence – PM

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5 hours ago

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2026/03/19

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Prime Minister Dr. Harini Amarasuriya stated that the government’s objective is to ensure the environment for the Commission to Investigate Allegations of Bribery or Corruption [CIABOC] to function as an independent body, without influence from anyone, including Members of Parliament and Ministers.

The Prime Minister made these remarks while participating in the debate on the interim resolution concerning the determination of salaries and service conditions of the officers and employees of the Commission under the Anti-Corruption Act.

The Prime Minister stated:

“Honourable Speaker, I consider the proposal presented today on determining the remuneration and service conditions of the officers and employees of the Commission to Investigate Allegations of Bribery or Corruption to be highly important. Although the Anti-Corruption Act was passed in 2023, we only began to truly feel the presence of an active Commission from 2025.

Since then, we have had to experience a number of challenges in operationalizing the Commission. In particular, there were several obstacles, including limitations in recruiting officers, which hindered the Commission from functioning as required. It was necessary to establish several practical conditions, such as granting the Commission the freedom to determine allowances for its staff, to formulate the rules and regulations required for its operations, to recruit personnel, and to submit budget estimates relevant to its annual plans. At the time the new Director General assumed duties, there were over 4,000 investigation files within the Commission where investigations had been completed but cases had not yet been filed. Moreover, there were only about 31 legal officers.

Follow the adoption of this proposal, the Commission will be granted the authority to recruit officers, determine necessary allowances, and make independent decisions regarding financial matters. This will enable the Commission to effectively fulfill its intended mandate. This proposal plays a significant role in building a new political culture in our country, one that is anti-corruption and committed to a transparent public service that is free from bribery”.

Further commenting, the Prime Minister also addressed the country’s response to the ongoing global energy crisis.

“In the current global context, our economy and energy sector are facing multiple challenges. These conditions are constantly evolving and difficult to predict. However, it is our responsibility as a government to recognize these changes and manage their impact on our economy.

Following that, the Cabinet has decided to appoint four special committees. Accordingly, one committee will focus on ensuring the uninterrupted provision of essential services to the public; while another will make decisions on maintaining public services through energy management within the public sector; a third will work with the Procurement Commission to identify new methods of energy procurement in addition to existing mechanisms; and a fourth will examine the social impacts arising from this situation, including its effects on vulnerable groups, and recommend fair solutions, relief measures, and welfare services.

This is a situation that we, as a country, must face collectively. The public service, the private sector, the political leadership regardless of party differences and the people of our country must come together to overcome this, just as we have faced previous challenges. We are confident that, we will be able to successfully face this situation through proper leadership and management, and by making timely decisions.

[Prime Minister’s Media Division]

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Heat Index at ‘Caution Level’ in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts

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5 hours ago

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2026/03/19

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Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 18 March 2026, valid for 19 March 2026

The general public are cautioned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.

Indoors: Check up on the elderly and the sick.

Vehicles: Never leave children unattended.

Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.

Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Pay hike demand: CEB workers climb down from 40 % to 15–20%

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6 hours ago

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2026/03/19

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A salary increase in the range of 15 to 20 percent is currently under discussion within the Ceylon Electricity Board (CEB), though no official decision has yet been taken, The Island reliably learns.

A senior electrical engineer who is is privy to ongoing salary negotiations, speaking on condition of anonymity, said the proposal had been put forward as a reasonable and necessary measure, rather than a rigid demand, in light of the prolonged delay in salary revisions. Earlier they have been asking for a staggering 40% salary increase.

“We are not insisting on this as a primary demand or condition. What we are requesting is for the authorities to seriously consider the possibility of granting an increase,” he said.

He emphasised that CEB employees had not received any salary increment since 2024 due to the ongoing reform and restructuring process, leaving staff to cope with rising living costs without adjustment.

“Under normal circumstances, the next salary revision would only be due in January 2027. That creates a significant and unfair gap. This proposal is, therefore, a justified attempt to secure at least a reasonable percentage in the interim,” he said.

The engineer warned that continued inaction could have serious implications for staff morale and operational efficiency at a time when the power sector is undergoing critical reforms.

Sources said that while internal discussions have pointed towards a 15 to 20 percent increase, the matter has not yet been formally taken up at policy level.

However, pressure is mounting on authorities to reach a timely and equitable decision, as frustration grows among employees over the absence of salary adjustments for nearly three years.

By Ifham Nizam

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